Customers' Satisfaction About Services Quality & Services Provided by BASIC Bank Ltd. - A Study On Khulna

Science Journal of Business and Management
2013; 1(4): 58-73

Published online November 10, 2013 (http://www.sciencepublishinggroup.com/j/sjbm)
doi: 10.11648/j.sjbm.20130104.12
Customers satisfaction about services quality & services

provided by BASIC bank Ltd. - a study on Khulna
Md. Ariful Islam1, Proshenjit Ghosh2, Md. Rayhan Islam3, Mithun Sarker3
1
BASIC Bank Limited, Khulna, Bangladesh

BRAC Bank Ltd, Dhaka, Bangladesh
3
Business Administration Discipline, Khulna University, Khulna-9208, Bangladesh
2
Email address:
arifrussell@yahoo.com(Md. A. Islam), proshenjit_ghosh@yahoo.com(P. Ghosh), rayhan_07@yahoo.com(Md. R. Islam),
sarker.mithun@ymail.com(M. Sarker)
To cite this article:

Md. Ariful Islam, Proshenjit Ghosh, Md. Rayhan Islam, Mithun Sarker. Customers Satisfaction about Services Quality & Services
Provided by BASIC Bank Ltd. - A Study on Khulna. International Journal of Business and Management. Vol. 1, No. 4, 2013,
pp. 58-73. doi: 10.11648/j.sjbm.20130104.12
Abstract: Contemporary business world is very much competitive and the success in the competition is achieved mainly
through giving satisfaction to the ultimate consumer. In service oriented industry, it is very difficult to set a standard rule to
satisfy customers. Several factors influence customers decision making to take the service from an organization. The
banking industry is a service industry; it provides the customer various financial services. So a banking organization must be
keen in identifying the factors which influence their decision in taking the financial service. Thus the bank also needs to know
the perception and satisfaction level of the customers about their performance. From the study it is found that significant
portion of customers is businessman and private service holder. The customers satisfaction level towards the overall
performance level is quite better. The most positive response factors are products (Average mean value 4.41), procedures of
services (average mean score 3.99, charges (average mean score 4.00) and performance of the employee (average mean value
4.11). They are neutral in rate of interest (average mean score 3.67) and physical environment and support (average mean
value 3.60). In the last part analysis of the variation in opinion due to demographic difference, it is found that the businessmen
are more satisfied by the overall services of BASIC Bank Ltd, Khulna Branch than the service holders. And the customer
whose income is between TK. 10000-40000 is more satisfied than the other two groups on average. Moreover, customers
whose income is between TK.40000-80000 is less satisfied on average of the six factors. So BASIC Bank Ltd, Khulna Branch
need to be concern to remove their dissatisfaction through adopting new mechanism and it will help the bank win customers
and increase their profitability.
Keywords: Satisfaction, Customer, Banking, Environment, Attitude, Service, Demographic
1. Introduction
1.1. Background of the Study
Customer service is a buzzword in the contemporary
business world. The banking industry is a service industry. It
provided its customers various financial services. Thus, a
banking organization must be keen in providing quality
service to its customers, because banks do their business
with the money of their customers. At present, in the
banking industry of Bangladesh many renowned banks are
operating. Bangladesh is a developing country with per
capita national income is US $ 520. About 42% people of the
country are living under poverty line. Banks and other
financial institutions have been playing a key role in

activating the financial sectors that in turns infuses
dynamism of the country. Actually banks provide necessary
funds for executing various programs underway the process
of economic development. BASIC Bank limited is one of the
specialized banks in Bangladesh. It has given lot money the
people of Bangladesh for their economic development.
The aim of learning is to gather practical knowledge from
the study. This study is an endeavor to acquire knowledge on
corporate environment by engaging in an organization for
certain period. This report on Customers Satisfaction
about Services Quality & Services Provided by the BASIC
Bank Ltd. - A Study on Khulna is accomplished in order to
gain practical view of customers about their financial service
providers. This study is done to know customers perception
International Journal of Business and Management 2013; 1(4): 58-73
and evaluation process of products of an organization.

Banks are the financial service providers, producing and
selling management of the public funds as well as
performing various significant roles in the economy of any
country. Globally banking process and its area are spreading
faster as well as getting wider day by day. On one hand they
are borrowing money from the locals and on the other hand
lending the same to the locals. So, people and government
are very much depending on these banks as the financial
market. In Bangladesh, several private banks are operating
their activities since long time. They are playing a vital role
in enhancing the quality of the banking service in our
country to attract the customer. The BASIC Bank Limited is
a forward looking and modern private bank with a long
record of sound performance. In this report, a survey study
has been to make to analyze the customers satisfaction on
the performance of the bank. This report is expected to have
implications for the management of the branch.
1.2. Objective of the Study
The study has been conducted to achieve the following
objectives:
1.2.1. Main objective
The primary objective of the study is to evaluate the
customer satisfaction about the services quality & services
provided by BASIC Bank Ltd Khulna Branch.
1.2.2. Specific Objective
The specific objective of the study is:
To explain the services offered to the customers at

BASIC Bank Khulna Branch. Along with, the way of
the offering the services of the bank will be examined.
To determine the various customer services expected

by customers.
To recommend to increase the service quality by

increasing the dimensions of customer services.
1.3. Rationality of the Study
Financial institution or intermediary that mediates or
stands between ultimate borrowers and ultimate lenders is
known as banking financial institution. Banks perform this
function in two ways- taking deposits from various areas in
different forms and lending that accumulated amount of
money to the potential investors in other different forms.
The banking industry is now on growth stage in Bangladesh.
Almost in every year new private banks are coming up and
new branches of existing banks are also opening up. So, now
the industry largely depends upon not only the quantity of
services they provide but also the quality of services they
render to the customers. All the banks have their own style
of operation. Their aim is to attract their target customers by
offering them valuable products and better services. These
customers choose different banks because of the variety and
quality provided services. Customers satisfaction depends
on the products that the banks are offering along with the
quality services that the banks are providing. The BASIC
59
Bank Limited is one of the leading private banks in

Bangladesh. All the private banks are offering almost the
same categories of products and services to their customers.
In this industry many customers are switching their banks
due to unsatisfactory services. In an organizational setting,
the aim is to achieve the organizational objective that is
bringing profit to the organization. As customers are the
king in the service oriented industry like bank. So it is very
much essential to satisfy their customers through their
offering i.e. performance. Therefore, it is very much
important to identify the factors which influence the
customers to choose their financial institution and their
perception on those factors and level of satisfaction in this
regard.
1.4. Methodology of the Study
1.4.1. Measuring Service Quality
The most widely used models in measuring service
quality in the banking sector are the SERVQUAL and
SERVPERF models. According to the SERVQUAL model
(Parasuraman et al., 1988), service quality can be measured
by identifying the gaps between customers expectations of
the service to be rendered and their perceptions of the
actual performance of the service.
SERVQUAL is based on five dimensions of service
quality (Parasuraman et al., 1988):
Tangibles: The physical surroundings represented by

objects (for example, interior design) and subjects (for
example, the appearance of employees).
Reliability: the service providers ability to provide

accurate and dependable services.
Responsiveness: a firms willingness to assist its

customers by providing fast and efficient service
performances.
Assurance: diverse features that provide confidence to

customers (such as the firms specific service
knowledge,
polite and trustworthy behavior of
employees).
Empathy: the service firms readiness to provide each

customer with personal
Each dimension is measured by four to five items. Each of
these combined 21 items is measured in two ways: the
expectations of customers concerning a service and the
perceived levels of service actually provided. In making
these measurements, respondents asked to indicate their
degree of agreement with certain statements on liker type
scale. For each item, a gap score (G) is then calculated as
the difference between the perception score (P) and the
expectation score (E). The greater the gap scores the higher
the score for perceived service quality.
The SERVPERF model was carved out of SERVQUAL
by Cronin and Taylor in 1992. SERVPERF measures service
quality by using the perceptions of customers. Cronin and
Taylor argued that only perception was sufficient for
measuring service quality and therefore expectations should
not be included as suggested by SERVQUAL (Baumann et
al, 2007).
60
Md. Ariful Islam et al.:
Customers Satisfaction about Services Quality & Services Provided by

BASIC Bank Ltd. - A Study on Khulna
The SERVPERF scale is found to be superior not only as

the efficient scale but also more efficient in reducing the
number of items to be measured by 50% (Hartline and
Ferrell, 1996; Babakus and Boller, 1992; Bolton and Drew,
1991). In this study, the SERVPERF scale is used to measure
to service quality in banking.
1.4.2. Service Quality and Customer Satisfaction
Kotler and Armstrong (2012) preach that satisfaction is
the pos-purchase evaluation of products or services taking
into consideration the expectations. Researchersare divided
over the antecedents of service quality andsatisfaction.
Whilst some believe service quality leads to satisfaction,
others think otherwise (Ting, 2004). The studies of Lee et
al.(2000); Gilbert and Veloutsou (2006); Sulieman (2011)
and Buttle (1996) suggest service quality leads to customer
satisfaction. To achieve a high level of customer satisfaction,
most researchers suggest that a high level of service quality
should be delivered by the service provider as service
quality is normallyconsidered an antecedent of customer
satisfaction. As service quality improves, the probability of
customersatisfaction increases. Quality was only one of
manydimensions on which satisfaction was based;
satisfactionwas also one potential influence on future quality
perceptions (Clemes, 2008).
Service quality is an important tool to measure customer
satisfaction (Hazlina et al., 2011). Empirical studies show
that the quality of service offered is related to overall
satisfaction of the customer. According toJamal and
Anastasiadou (2009), reliability, tangibility and empathy
positively related with customer satisfaction. Sulieman
(2011) found that reliability, tangibility,responsiveness and
assurance have significant and positive relationship with
customer satisfaction.Meanwhile empathy was found to
have a significant and negative effect on customer
satisfaction. Moreover, the result of Ravichandran et al
(2010) indicatesresponsiveness is the only significant
dimension ofservice quality that affects the satisfaction of
customers positively.
1.4.3. Sources of Information
The sources of data or information are divided into two
parts. Those are primary sources and secondary sources.
1.4.4. Primary Sources
In the primary sources, data have been collected from the
customers of BASIC Bank Ltd, Khulna Branch.
1.4.5. Secondary Sources
In the secondary sources, data have been collected
through the different text books and journals relating to the
theoretical framework of the study. Furthermore, annual
report of the bank and also data collected from the web
search.
1.4.6. Sampling Techniques
1.4.6.1. Population
The target population for this study is the current
consumers of BASIC Bank Ltd, Khulna Branch and total

population is 2000.
1.4.6.2. Sample Size
200 respondents have been taken for this study of the
BASIC Bank Ltd among the respondents 115 are current
account holders, 70 are savings account holders and rest 15
are cash credit account and short term deposit holders.
1.4.6.3. Customer Demographics
Please note that the figures have been rounded to the
nearest decimal place and in some cases, may not ad up to
100 percent.
Type of Respondents
Numbers
In percentage
Current A/C Holder
115
58
Savings A/C Holder
70
35
CC A/C Holder
15
Total
200
100
1.4.6.4. Questionnaire Development

Study instrument is questionnaire and 5 point likert scale
is used. The questionnaire consists of both open and close
ended questions. Customers opinions are also taken in some
of the cases to identify the reason behind their opinion. The
close ended questions were in a 5 points likert scale, (where
5 represents strongly satisfied and 1 represents strongly
dissatisfied). Here 27 positive statements have been used to
identify the customers satisfaction on the services of the
BASIC Bank Ltd, Khulna Branch. The 27 statements are
divided into six broad categories these are products types
and features, rate of interest, procedures of services, charges,
performance of employees and physical environment and
support.
1.4.7. Data Analysis
Customers satisfaction on a particular statement has been
determined by calculating mean of the value corresponding
to the opinion of the statement. And Standard deviation is
used to measure variability of the response among the
respondents. Average mean value of the statements under a
particular factor is treated as the mean of that factor. Average
is calculated to determine the satisfaction of the respondents
to a particular factor.
2. Literature Review
Marketing has been conceptualized and accepted as an
activity directed at satisfying needs and wants through
exchange processes. The Marketing Concept is essentially
the satisfaction of customer needs through integrated
marketing with the intent to satisfy the customer while
earning a profit. The basic idea is that a satisfied customer
will be more likely to repurchase, leading to increased sales
and market share for the firm. Integrated marketing activities
aimed at producing customer satisfaction include what have
been referred to as the four ps of marketing, namely
product, promotion, price, and place. Generally, marketing

is considered as the primary functional area in the firm that
works to satisfy the firms customers. While it is true that
customer satisfaction is the result of the total marketing
effort, industry has generally failed to recognize the
importance of customer service as provided by physical
distribution to customer satisfaction and has not effectively
integrated customer service with the other components of
the marketing mix. (Journal of Business Logistics. 1994)
Customer satisfaction is merely a response to the value
proposition offered in specific products/markets
(Reidenbach, 1995). By this view, banks must determine
how customers define value in order to provide added-value
services. Reidenbach (1995) argued that customer value is a
more viable element than customer satisfaction because it
includes not only the usual benefits that most banks focus on
but also a consideration of the price that the customer pays.
Customer value is a dynamic that must be managed.
Satisfaction is generally viewed as a broader concept. The
customers oriented terms- quality and satisfaction have been
the focus of attention alike over the last decades or more.
Satisfaction is the consumers fulfillment response. It is a
judgment that a product or service feature, or the product or
service itself, provides a pleasurable level of consumption
related fulfillment. Customer satisfaction is influenced by
specific product or service features and by perceptions of
quality .Satisfaction is also influenced by customer
emotional response, their attributions, and their perceptions
of equity (Zeithamal, V. 1984 pp 85-87). Sureshchandra,
G.S., Rajendran, C., and Ananthoraman, R.N. (2002),the
relation between service quality and customer satisfaction- a
factor specific approach, Journal of Service Marketing.
Bolton and Drew (1991) also proposed that satisfaction
leads to service quality.
A previous study found that customer satisfaction is a key
and valued outcome of good marketing practice (Fornell
1992; Anderson, Fornell, and Lehmann 1994). According to
Drucker (1954), the principle purpose of a business is to
create satisfied customers. Increasing customer satisfaction
has been found to lead to higher future profitability
(Anderson, Fornell, and Lehmann 1994), lower costs related
to defective goods and services (Anderson, Fornell, and Rust
1997), increased buyer willingness to pay price premiums,
provide referrals, and use more of the product (Reichheld
1996; Anderson and Mittal 2000), and higher levels of
customer retention and loyalty (Fornell 1992; Anderson and
Sullivan 1993; Bolton 1998). Increasing loyalty, in turn, has
been found to lead to increases in future revenue (Fornell
1992; Anderson, Fornell, and Lehmann 1994) and
reductions in the cost of future transactions (Reichheld 1996;
Srivastava, Shervani, and Fahey 1998). All of this empirical
evidence suggests that customer satisfaction is valuable
from both a customer goodwill perspective and an
organizations financial perspective. Empirical studies have
found evidence that improved customer satisfaction need not
entail higher costs, in fact, improved customer satisfaction
may lower costs due to a reduction in defective goods,
61
product re-work, etc. (Fornell 1992; Anderson, Fornell, and

Rust 1997).
Increased customer repurchases increase the profitability
of firms (Fornell. 1992) and maintaining customer
satisfaction is key to retaining customers (Mittal, Katrichis
and Kumar, 2001). Price has been a traditional form of
competition but with increased competitive pressures, TQM,
instantaneous worldwide communication, and flexible
manufacturing, price competition is no longer sufficient.
Product design, quality, performance, and delivery have
become more important factors in creating customer
relationships (Flint, Woodruff and Gardial, 2002). To be
competitive, it is important that todays marketers
understand exactly which factors drive customer satisfaction
judgments and focus on fulfilling those elements. (Journal of
the Academy of Business and Economics, 2003)
The most widely accepted model of customer satisfaction
is the expectancy disconfirmation paradigm (Patterson,
Johnson and Spreng, 1997). In this model, when a
consumers expectation of performance is met, the
expectation is said to be confirmed. When actual
performance is below the expected level of performance, the
expectation is negatively disconfirmed and when actual
performance exceeds the expected level of performance, the
expectation is positively disconfirmed. Overall satisfaction
is considered a multi-attribute model in which overall
satisfaction has multiple components. (Journal of the
Academy of Business and Economics, 2003)
Early research into satisfaction investigated satisfaction
as a uniform construct across all product categories and in all
markets. There was an implicit assumption that satisfaction
is evaluated in the same way for all types of offerings. As the
investigation of customer satisfaction matures, this
assumption has begun to be questioned. Yi (1990), in a
review of consumer satisfaction, anticipates that satisfaction
varies from one product category to another when he
questions, Are the links between the variables different
across consumers, products, or situations? (p. 107). This
suggests that the characteristics of an offering influence
which aspects buyers use when making satisfaction
judgments. For example, satisfaction with office supplies
may be driven by satisfaction with the vendor whereas
satisfaction with a fork lift may be more influenced by
characteristics of the product itself, such as its reliability
(Kauffman, 1994).(Journal of the Academy of Business and
Economies,2003)
Mittal, Ross, and Baldasare (1998) find that a consumer
can be both satisfied and dissatisfied with different aspects
of the product (p. 34) at the same time. Thus, a customer
might experience overall satisfaction in spite of components
that are dissatisfying. Hypothetically, for example, a
customer might experience high overall satisfaction because
the salesperson was very accommodating and helpful and
the vendor shipped on time, even though the product itself
was not optimal. This ability to be simultaneously satisfied
and dissatisfied with different attributes of the offering is
important to marketers; by understanding the relative
62

importance of attributes, marketers can spend resources on

those attributes that increase levels of overall satisfaction
while avoiding expenditures on attributes that have little
influence on overall satisfaction (Kellar and Preis, 2003).
(Journal of the Academy of Business and Economics, 2003)
In businesses especially in the banking sectors where the
underlying products have become commodity-like, quality
of service depends heavily on the quality of its personnel.
This is well documented in a study by Leeds (1992), who
documented that approximately 40 percent of customers
switched banks because of what they considered to be poor
service. Leeds further argued that nearly three-quarters of
the banking customers mentioned teller courtesy as a prime
consideration in choosing a bank. The study also showed
that increased use of service quality/sales and professional
behaviors (such as formal greetings) improved customer
satisfaction and reduced customer attrition.
According to Philip Kotler, Bitner, M. J., and Zeithmal, V.
A. (2003) added that customer must see service provider as
ready and willing to perform.Indeed customer satisfaction
has for many years been perceived as key in determining
why customers leave or stay with an organization.
Organizations need to know how to keep their customers,
even if they appear to be satisfied. Reichheld (1996)
suggests that unsatisfied customers may choose not to defect,
because they do not expect to receive better service
elsewhere. Additionally, satisfied customers may look for
other providers because they believe they might receive
better service elsewhere. However, keeping customers is
also dependent on a number of other factors. These include a
wider range of product choices, greater convenience, better
prices, and enhanced income (Storbacka et al., 1994).
Customer buy goods and services to meet specific needs
and they evaluate the outcomes of their purchases based on
what they expect to receive .Needs are deeply rooted in
peoples unconscious and concern long term existence and
identity issues. When people feel a need, they are motivated
to take action to fulfill it. Customer expectations embrace
several different elements, including desired service,
adequate service, predicted service and a zone of tolerance
that falls between the desired and adequate service levels.
Satisfaction can be defined as an attitude like judgment
following a purchase act or a series of consumer- product
interactions. Although the terms quality and satisfaction are
sometimes used interchangeably, researchers stress the need
for greater precision. Customer satisfaction is not and ends
in itself .Instead it is the means to achieving a number of key
business goals. First, satisfaction is inextricably linked to
customer loyalty and relationship commitment. Second,
highly satisfied customers spread positive word of mouth
and become walking talking advertisements for an
organization whose service has pleased them, thus lowering
the cost of attracting new customers. Third highly satisfied
customers may be more forgiving .Finally delight customers
are less susceptible to competitive offerings (Lovelock,
2001, Service Marketing). For example, First Direct, the all
telephone bank introduced, has gain huge number a new
customers from recommendations by its existing account

holders (featured as a case study on pp.639-652, in Lovelock,
2001, Service Marketing).
Though the customers purchase the core product but yet
customers are concern about the supplementary elements.
Sometimes these supplementary things can enhance or
decrease the satisfaction. Customers satisfaction towards
the service includes the core products along with
supplementary services (Lovelock, 2001). According to
Lovelock supplementary services are two types-facilitating
services and enhancing services. Facilitating services
includes information, order taking, billing, payment and on
the other hand enhancing services includes consultations,
hospitability, safe keeping and expectation.
Customers satisfaction is one of the vital important
factors in every organization. There exists a link between the
customers satisfaction and the organizations overall
performance. To know the level of customers satisfaction is
essential because it helps the institutions to know how well
they are doing in comparison to others and also what the
customers desire from them, what they need to add,
removes or change along with core offering. Manager need
to be concerned on a day-to-day basis that the customers are
satisfied, the operational system are running smoothly and
efficiently and the employees are not working productively
but are also doing a good jobs either of serving customers
directly or helping other employees to deliver good services.
However, the distinctive nature of services performances,
especially such aspects as involvement in production and the
importance of time factors i.e. procedures of services require
that some strategic elements be included. To capture the
nature of the challenge, 8Ps model of integrated service can
be used, which highlights the strategic decision variables
facing managers of service organizations (Lovelock, 2001).
According to him these are products elements, place
cyberspace and time, process, productivity and quality,
people, promotion, education, physical evidence, price and
other user costs.
Several studies in the marketing literature have
considered the relationship between customer satisfaction
and performance at the firm level. Not surprisingly, the
results generally show that customer satisfaction provides
economic benefits to the firm. For example, customer
satisfaction has been linked to increased revenues (Fornell,
1992; Gmez, McLaughlin & Wittink, 2004; Rust, Zahorik,
& Keiningham, 1995), more inelastic demand (Anderson,
1996), and reduced costs for attracting new customers and
other costs associated with poor quality, defects and
complaints (Anderson, Fornell, & Rust, 1997). Reflecting
these benefits, customer satisfaction has been found to
positively affect a firms profitability (Anderson, Fornell, &
Lehmann, 1994; Aaker & Jacobson, 1994; Capon, Farley, &
Hoeni, 1990), and its market value (Aaker & Jacobson, 1994;
Ittner & Larcker, 1998). While extant literature provides
evidence for the positive effect of a firms customer
satisfaction, little if any research has considered the effect of
rivals customer satisfaction on a firms performance.
In case of bank, the services are intangible in nature, here

the core services is the products and features (deposits and
loan) but the supplementary services are the procedure of
getting the services, speed of service providing, the physical
environment and also the attitude of personnel. As the staff
of the organization provide the services so the attitude of the
staffs is very important for the customer tom be satisfied
when they are getting the service. Thats why it is a vital
important for every organization to teach their employees
about how fairly they will deliver their service. The
customers of Nationalized Commercial Banks (NCB) are
unsatisfied than that of Private Commercial Banks (PCB).
The main reason is that the employees of NCBs do not care
to render service to the customer. To provide a quality and
satisfactory service, bank needs to identify the reasons
customers preference (F. Ahmed, 1996). According to him
there are 6 factors, which affect the customers preference
towards the services of the bank. These are time spent of
waiting, cost of service, efficiency of services, and rate of
interest, behavior and advice. Along with these factors there
are many more elements which affect customers
satisfaction in evaluating the services of the bank.
A previous study in New Zealand banking study found
that empathy and assurance are most important for
customers satisfaction (Philip Kotler, Bitner, M. J., and
Zeithmal, V. A. (2003)). According to them, empathy means
the provision of caring individualized attention to the
customer and assurance means that the knowledge and
courtesy of employees and their ability to convey trust and
confidence. When purchasing services, customers attention
is limited to a small number of tangible inputs (Zeithmal,
1984). Physical environment- buildings, offices and interior
design affect customers beliefs, attitude and satisfaction and
provide an opportunity to tell the right story about given
service (Berry, 1984). Its an important task to make the
intangibles into tangible because customers do not usually
know what they are getting until they do not get it (Levitt,
1981; 1983) Indeed, the impact of satisfaction on
commitment and retention varies in relation to the industry,
product or service, environment, etc. However, customer
commitment cannot be dependent only on satisfaction
(Burnham et al., 2003). Kaynak and Kucukemiroglus (1992)
study of the Hong Kong banking market discovered that
customers choose their banks because of convenience, long
association, recommendations of friends and relatives, and
accessibility to credit.
From the analysis of literature review, some elements can
be taken as the indicator of performance measurement
criteria of the bank. And these are divided into 6 main
factors. The main factors are products, rate of interest,
procedure of services, charges, performance of the
employees and physical environment and support. These
factors affect the customer mostly while they are receiving
the service from the bank. The bank needs to identify a
customer want and desire to fulfill his or her needs. And
customer value is the ratio between the customers perceived
benefits and the resources used.
63
There are some terms thats defined as follows:

2.1. Customer Service
By definition, Customer service refers to the broad range
of activates that a company and its employees undertake in
order to keep customers satisfied so they will continue doing
business with the company and speak positively about the
company to other potential customers. (Kotler, 2004)
Customer service is unavoidable. It adds flue to the
overall portability of the company. Industrial revolution in
the 18th century, growth of individualism, first and second
world war, sky-culture and tremendous development of
communication technology- all have contributed profoundly
to the overall growth of the concept of excellent customer
service. All companies whether they manufacture physical
goods, such as cars or radios, cigarettes, machineries or
provide intangible products such as banking and other
financial services offer some type of customer service.
Customer service activities can range all the way from
providing customers with free parking to letting them
transfer funds from their money market accounts. Business
that sells physical goods, for example, provide their
customers with repair and warranty services, the option to
return unsatisfactory goods, home delivery, telephone
ordering lines of credit.
Customer service is a buzzword in the contemporary
business word. Most of the companies in the modem world
generally use highly sophisticated office equipments and
machinery, recruit manpower, use quality raw materials and
follows modem management technique but the basic
difference lies in providing skillful and quality customer
service to its end users. It is actually customer service that
differentiates the operational supremacy of difference
companies. (Kot1er, 2004).
In 1994 Delta Airlines lost one of the satisfied customers
of New York just because of the front desk receptions poor
handling of the customer. The lost customer was a chief
executive of a renowned company who used to travel all
over the world for business reason. It was estimated that
Delta Airlines lost US$ 1.0 million (Havard Business
Review Sep-Oct 1995) in the ibrm of ticket value from the
particular company during 1994. That is why, customer
service is the single most dominant intangible factor that
gives company an unprecedented corporate image, solid
bandage with customer, higher profitability and win-win
situation to the overall business transactions.
Two type of customer services are, External and Internal
Customer Service.
2.2. External Customer Service
An external customer service is a services which is given
to a person or a business who in a position to i) buy or use the
companys products and services or ii) advise to buy or use
its products and services, for example, doctors or patients for
any medicine company.(Zeithaml,1984,A Conceptual
Model of Service Quality)
64

2.3. Internal Customer Service
2.6. Complaint and Suggestion System
An internal customer service is a service that is provided

b the employees of a company to other employees of the
same company. For example, the services of the employees
of accounting, information systems or human resources
department to their fellow employees. This service is crucial
in helping them meet the needs of companys external
customers.(Zeithaml. I 984, A Conceptual Model of Service
Quality)
Now a day, complaint and suggestion system is treated as

an effective mechanism of measuring customer level. Most
of the companies are now establishing hot lines with toll free
numbers. These are also practicing Web sites and e-mail for
quick and both way communication. (Kotler,2004)
2.4. Customer Satisfaction

Satisfaction is a persons feelings of pleasure or
disappointment resulting from comparing a products
perceived performance in relation to his or her expectations.
If the performance falls short of expectations the customer is
dissatisfied. If the performance matches the expectations,
the customer is satisfied. If the performance exceeds
expectations, the customer is highly satisfied or delighted.
(Kotler, 2004)
2.5. Tools of Measuring Customer Satisfaction
Measurement of customer satisfaction plays a very vital
role in current days. Without satisfying customer needs and
wants properly, it might be difficult for the company to
survive in the competition. Measuring the satisfaction of
consumer is a difficult job. But there are some ways these
are as bellow.
While it seems clear that increasing customer satisfaction
is beneficial to a marketing manager, how to measure it is
less clear. Customer satisfaction has been studied from the
perspective of the individual customer and what drives their
satisfaction (Oliver and Swan 1989; Oliver 1993; Fournier
and Mick 1999) as well as from an industry-wide
perspective to compare customer satisfaction scores across
firms and industries (Fornell 1992; Anderson, Fornell, and
Lehmann 1994; Fornell et al. 1996; Mittal and Kamakura
2001), while other research has examined customer
satisfaction in a single organization (Schlesinger and
Zornitsky 1991; Hallowell 1996; Loveman 1998) or across
several organizations (DeWulf, Odekerken-Schrder, and
Iacobucci 2001).
In attempting to measure customer satisfaction, it is
possible that attributes can have different satisfaction
implications for different consumer and market segments
the usage context, segment population, and market
environment can influence satisfaction and product use
(Anderson and Mittal 2000). Failure to take into account
segment-specific variation may lead a firm to focus on the
wrong aspect for a given set of consumers (Anderson and
Mittal 2000). Furthermore, consumers with similar
satisfaction ratings, yet different characteristics, may exhibit
different levels of repurchase behavior (Mittal and
Kamakura 2001). It is clear, then, that market and consumer
segments should be important factors to consider when
measuring customer satisfaction and its implications.
2.7. Customer Satisfaction Surveys

Responsive companies measure customer satisfaction
directly by conducting periodic surveys. While conducting
customer satisfaction data, it is also useful to ask additional
questions to measure repurchase intension and to measure
the likelihood or willingness to recommend the company
and brand to others. (Kotler, 2004)
2.8. Service Quality
The primary responsibilities of employees in customer
service positions usually entail creating and delivering the
service in the customers presence as well as providing
information, taking instructions and receiving payments and
solving problems. New customers in particular, often rely on
customer service personnel for assistance in learning how to
use a service effectively and how to resolve problems. For
example, in the banking industry, the combination of a
highly competitive and new technologies have forced banks
to add more services in an attempt to increase their
profitability(Bolton and Drew,1991).
During the 1980s and early 1990s, improving service
quality has become a major priority. In a service context, this
strategy required efforts to improve customer satisfaction by
creating better service process and outcomes. Quality means
different things to people according to the contest. Quality
focuses on the benefits created for customers side at the
equation. (Bolton and Drew, 1991)
2.9. Customer Queries
Customer queries are an important feature of customer
satisfaction. Different customers come to the bank with their
different queries. They may have both the product and
service related queries. Customers queries indicate the
customers information search about the product and service
of the bank. When a customer comes to the hank to search
their information the staffs must have to he helpful and
knowledgeable. When a customer comes to a bank he or she
expects the best level of service from the employees.
Employees wont be able to help these customers if they are
not enough knowledgeable about the products and services
they are providing. Customer queries in term of their
account opening has to be efficient and employees attention
to be needed. When a customer opens a new account he or
she has lots of queries about the hank as he/she is new in the
bank. Customer has queries also in other area like their
transaction with the bank. They have many queries about the
transaction like the procedure, instruction, accuracy and
efficiency. Customers have queries in terms of their
complaints also. When they place a complaint they seek

responsiveness, concern, expectations and arrangement.
When a bank can efficiently provide the information of
customer queries, they will be able to make their customer
highly satisfied. (Kotler, 2004)
65
are the same as other banks. In this statement respondents

are 190 out of 200. Most of the respondents are satisfied as
70 respondents put tick on the option of Strongly Agree.
The customers satisfaction level towards Variety services
in local remittance are satisfactory is given in next table:
Table 3.1.2. Varity of services in local remittance is satisfactory
3. Analysis and Interpretation
Options
The survey regarding the customer satisfaction about the

services provided by the BASIC Bank Limited, Khulna
Branch has been conducted upon 200 customers of the
branch. It is a questionnaire survey consisting of 27
statements under six broad categories. Respondents are
asked to tick mark the best option considering their
satisfaction of the particulars sectors. Statistical summary
and interpretation are given below according to factors:
Value
Frequency
Strongly Agree
70
Agree
89
Neutral
31
Disagree
Strongly Disagree
Total
190
Mean Score
4.21
Standard Deviation
0.482
3.1. First Factor: Products

There are six types of products in BASIC Bank Khulna
Branch. These are as follows
3.1.1. Deposit Products Are Adequate To Meet the Need
In each and every year BASIC Bank lunches new
products as a response to the dynamic trends. In the present
the bank has six types of deposits products with different
features. And in very soon the branch added the credit card
and on-line banking. The customers satisfaction level
towards Deposit products are adequate to meet the need is
given below:
Table 3.1.1. Deposit products are adequate to meet the need
Options
Value
Frequency
Strongly Agree
51
Agree
143
Neutral
Disagree
Strongly Disagree
From the table 4.1.2 its seen that 190 no. of the surveyed
customers had given their response the statement. 70
customers are strongly satisfied, 89 are satisfied and 31 are
neutral out of 190 respondents in the case of local remittance
services. The mean value is 4.21 that supports the customers
are agree with the statement as the value assign to the option
is 4. The standard deviation 0.482 which denotes, there exist
lower variability in the satisfaction of the customers.
3.1.3. Loan Products (O/D, Term Loan) are Adequate to
Meet the Need
BASIC Bank Limited Khulna Branch offers five types of
loans: Over Draft (OD), Term loan, Time loan, CCS
(Consumer Credit Scheme) and LTR. But mainly provides
the short term loan for their customers. To meet the
customers personal as well as business need the Bank
should offer more products.
Table 3.1.3. Loan products (O/D, Term loan) are adequate to meet the need
Options
Value
Frequency
Total
200
Strongly Agree
25
Mean Score
4.22
Agree
98
Standard Deviation
0.252
Neutral
Disagree
Strongly Disagree
The BASIC Bank Limited, Khulna Branch provided six

types of products to the customers, deposits products is one
of them. From the table 51 respondents are strongly agree
and 143 are agree out of 200 respondents in the case of
deposits products are adequate to meet the need. The
calculated mean value is 4.22; it indicates that the customers
of the branch are satisfied from the service because the mean
value is exits between value 5 and 4. And the standard
deviation is 0.252, it mean that the customers has lower
variability; it is a good indicator because the higher value
shows the grater variability.
3.1.2. Varity of Services in Local Remittance is Satisfactory
BASIC Bank limited local remittance services include TT
(Telegraphic Transfer), DD (Demand Draft), PO (Payment
Order) Collection and clearing. The banking processes here
Total
132
Mean Score
4.11
Standard Deviation
0.267
Here mean score is 4.11 that mean the customers are

satisfied with the statement as the value assigned between
strongly satisfied and agree level. The standard deviation
(0.267) suggests, the satisfaction of the respondents that has
been given to the statement is consistent because the lower
value is better in case of standard deviation.
3.1.4. Satisfied with different types of foreign exchange
services
The foreign exchange department of BASIC Bank Ltd,
Khulna Branch is mainly work two types one is opening L/C
66

and receives foreign remittance. Customers satisfaction

towards the Satisfied with different types of foreign
exchange services is given below:
Table 3.1.4. Satisfied with different types of foreign exchange services
Options
Value
Frequency
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
13
Mean Score
4.46
Standard Deviation
0.536
From the table 4.1.4 its seen that the 7 respondents are
strongly satisfied and 5 are satisfied out of 13 respondents
and no one is disagree by the services. The mean value is
4.46 indicates that the customers near strongly satisfied
position. And the standard deviation is 0536 indicates the
customers have moderate variability level.
3.1.5. Locker Services is Satisfactory
Customers satisfaction towards the Locker services is
satisfactory is given below:
Table 3.1.5. Locker services is satisfactory
Options
Value
Frequency
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
4.57
Standard Deviation
0.245
The locker service by the BASIC Bank Khulna Branch is

satisfactory, because the mean value is 4.57. The customers
of the bank are satisfied by the service. Mention that only 7
customers are surveyed out of 200 respondents. The
standard deviation is 0.245 indicates that the customers are
lower variability level.
3.1.6. Purchase and Encashment of Sanchaya Patra is
Satisfactory
Different types of Sanchaya Patra are sold by the
Bangladesh Bank through schedule banks.. The BASIC
Bank Limited is one of them. Now the bank sells three types
of Sanchaya Patra 5Years Term Bangladesh Sanchaya
Patra, 3months term Munaphaviitik Sanchaya Patra and 5
years Pensioner Sanchaya Patra. The rate of interest is 12%,
11.50% and 12.50% respectively.
Table 3.1.6. Purchase and encashment of Sanchaya Patra is satisfactory

Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
32
4
0
0
0
36
4.89
0.099
strongly satisfied out of 36 respondents and 4 is satisfied and
no one is disagree by the services. The mean value is 4.89
indicates that the customers near strongly satisfied position.
And the standard deviation is 0.099 (it is unique in this
survey) indicates the customers had very lower variability
level because the lower value shows that the customers
opinions are not vary greatly.
3.2. Second Factor: Rate of Interest
3.2.1. Interest Rate for Deposit and Schemes is High
The following data are collected Bank Circular no 247/08
show the rate of interest which is effective March 01, 2008.
The interest rate of savings deposits is 7.00%.Mentioned
that the rate is higher in any bank in Bangladesh in present
time. The interest rate of STD is 4.50%, FDR 3 months
7.25%, 6 months 7.50% 1Year 8.00% and more than two
years from 8.25%to 9.00%.
Table 3.2.1. Interest rate for deposit and schemes is high
Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
35
143
2
0
0
180
4.18
0.172
Here respondents opinion varies to some extent, as

standard deviation is 0.172 which indicates that the
customers opinions are not vary one to another. Moreover,
mostly voted opinion is (143) and means score is also 4.18.
So, customers are not fully satisfied.
3.2.2. Interest Rate for Loan Product is Low
Table 3.2.2. Interest rate for loan product is low
Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total1
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
5
32
78
21
0
36
3.15
0.513
The customers of the BASIC Bank Limited response

negatively at this statement as mean score is 3.15 which
indicate that the customers are absolutely neutral in the
position. The standard deviation is 0.513 indicates that the
customers of the bank are moderately satisfied in the case of
interest for loan product.
3.3. Third Factor: Procedures of Services
3.3.1. Account Opening Procedure is Easy
Account opening procedure of the bank is easy other
specialization bank in Bangladesh. The difficulty is that the
applicant has to show a valid photo ID, copy of TIN (Tax
Identification Number), trade license and photo off nominee.
But in present time account opening procedures is very
lengthy and time consuming matter.
Table 3.3.1. Account opening procedure is easy
Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
75
122
1
2
0
200
4.35
0.298
From the table 4.3.1, it is seen that among the 200

respondents, 75 of them are found strongly agree and 122 of
them are also agreeing with the statement. Customers are
very satisfied, as the mean score is 4.35. They think, it is
very important for financial institutions to know their
customers very well. The dissatisfied customers view that it
is not always possible to arrange all when the applicant
wants to open account immediately Standard deviation is
0.298; so views of customers are not consistent.
3.3.2. TT, DD & PO Issuing Procedure is Easy
The BASIC Bank Limited provides service to the
customers through TT, DD and PO as local remittance. The
pay order is only the inter region service and TT and DD is
national wide service.
Table 3.3.2. TT, DD & PO issuing procedure is easy
Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
66
93
35
0
0
194
4.16
0.495
In the point of TT, DD and PO issuing procedure, 66

customers of the survey response strongly agree, 93 are
agreed and no one is disagree and strongly disagree out of
194 respondents. The mean value 4.16 indicates that the
67
customers are satisfied by the above service. It also indicates

that the customer stay short time to get the service. The
standard deviation is 0.495 indicates that the customers
variation of the option is moderately satisfied.
3.3.3. Loan Sanction and Disbursement System is Easy
The BASIC Bank Ltd provides two types of loan one is
working capital loan and another is term loan. Customers
repay the loan equally monthly installment which is a strict
law of the bank for the customers.
Table 3.3.3. Loan sanction and disbursement system is easy
Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
19
76
34
1
0
130
3.87
0.421
The results shown in the table 3.3.3 identifies that

customers are satisfied with this criterion. But some
respondents are disagreed as they claim that the demanded
more documents against the loan. The mean value 3.87
indicates that the customers are near satisfied level against
the expectation. The standard deviation (0.421) also support
that the customers are consistent.
3.3.4. Cash Deposit and Withdrawal Procedure is very
Quick
Customers satisfaction towards the Cash deposit and
withdrawal procedure is very quick is given below:
Table 3.3.4. Cash deposit and withdrawal procedure is very quick
Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
34
144
22
0
0
200
4.06
0.277
Cash deposit and withdrawal is a common picture of

banking system. From the table 3.3.4 its seen that the 34
respondents are strongly satisfied and 144 are satisfied out
of 200 respondents and no one is disagree by the services.
The mean value is 4.06 indicates that the customers near
strongly satisfied position. And the standard deviation is
0.277 indicates the customers had very lower variability
level
3.3.5. Queue System of Cash Counter is Perfect
The customers need to know the balance of their account
and it is known from the cash counter. Any customer can
easily know through cell service or physically appearance by
68

the both services. The table shows the results:

Table 3.3.5. Queue system of cash counter is perfect
Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
45
130
24
1
0
200
4.10
0.356
The cash counter of the bank is perfect, because 45

customers are strongly satisfied 130 are satisfied out of 200
respondents and no one is disagreed in the statement. The
mean value is 4.10 indicates that the customers near strongly
satisfied position. And the standard deviation is 0.356
indicates the customers had very lower variability level
3.3.6. Customers Complaint and Suggestion System is
Satisfactory
Before July, 2012 there is no customers complaint box
where the customers can write their complaint. Customers
satisfaction towards the Customers complaint and
suggestion system is satisfactory is given below:
Table 3.3.6. Customers complaint and suggestion system is satisfactory
Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
19
50
127
4
0
200
3.42
0.474
strongly satisfied, 50 are satisfied and 127 are neutral out of
200 respondents and no one is disagree by the services. The
mean value is 3.42 indicates that the customers near strongly
satisfied position. And the standard deviation is 0.474
indicates the customers had very lower variability level.
3.4. Forth Factor: Charges
3.4.1. Account Related Charges is Low
Account related charges include maintenance fee, average
balance fee, transaction fee, counter transaction fee, account
closing charge etc. Here 200 respondents give their opinions.
BASIC Bank has a better position in relation to the topic of
account related charges as the bank takes only what needs to
maintain an account. Most customers give positive view as
23 respondents put tick on the option of Strongly Agree.
Here is has been found that the 23 respondents are
strongly satisfied, 140 are satisfied and 36 are neutral out of
200 respondents and no one is disagree by the services. The
mean value is 3.93 indicates that the customers are near
satisfied to a great extent. And the standard deviation is

0.325 indicates the customers had very lower variability
level. So the customers opinions are vary one to another.
3.4.2. Services Charge for Local Remittance is Low
Services for local remittance are as usual in BASIC Bank
Ltd and it doesnt vary with other banks. But some cases the
bank provides lower charges for the customers.
The BASIC Bank Ltd. provides local remittance for their
customers. And the charges of local remittance are lower
than other private banks. From the survey, it is found that the
75 respondents are strongly satisfied, 78 are satisfied and 25
are neutral out of 200 respondents and no one is disagree by
the services. The mean value is 4.09 indicates that the
customers are satisfied to a great extent. And the standard
deviation is 0.837 indicates the customers have very higher
variability level. So the customers opinions are vary one to
another.
3.4.3. Satisfied with Charges for Foreign Exchange
Services
The foreign exchange department of the BASIC Bank
(Khulna Branch) provides two types of services first one
opening L/C and second one is receive remittance.
From the survey, it is found that the 6 respondents are
strongly satisfied and 10 are satisfied out of 200 respondents
and no one is disagree by the services. The mean value is
4.05 indicates that the customers are satisfied to a great
extent. And the standard deviation is 0.520 indicates the
customers have moderate variability level. So the customers
opinions are vary one to another.
3.4.4. Loan Processing Fee is Reasonable
Here is has been found that the perception towards the
processing fee for the amount of loan is not so good. Here
133 respondents gave the response regarding the element.
Among them 20 are neutral about the processing fee of
BASIC Bank.. The mean score also supports this. The
dissatisfied consumers also showed their logic behind their
opinion. Firstly, they said that when they take the loan in a
small size then sometimes the processing fee will be very
high thats why even they go to other bank for small amount
of loan. So the customers of BASIC Bank have a negative
impression about the processing fee. Because customers said
that service charge in order to maintain account is very high
so processing charge for loan is an extra burden.
3.4.5 Charges for TT, DD, PO is Reasonable
The service charge of TT, DD and PO is lower than other
bank in the city. The services charges are vary in some
special cases. In the case of TT (TK. 1.00 lac to 5.00 lac)
charge is commission tk.50, telegraphic charge tk.50 and
VAT Tk 8 and more than 5.00 lac charge will be increased by
0.1% and telegraphic charge will be fixed.
From the survey, it is found that the perception towards
charge for Pay Order TT and DD is good. Here among the 33
respondents are strongly satisfied and 140 are satisfied about
the charges of BASIC Bank Ltd when they were asked
whether the charge for Pay Order TT, DD is reasonable. On

the other side there is no consumer can be found that they are
strongly agreed about the charge for Pay Order, TT, and DD
of the bank. The mean value is 4.05 indicates that customer
of the bank are satisfied by the service. The standard
deviation 0.283 implies that the customers of the bank are
lower variability.
3.5. Fifth Factor: Performance of Employees
3.5.1. Employees Skill and Knowledge is Satisfactory
Employees skill and knowledge are essential to best
customers service. The well trained employees provides
good services in any point. From the survey, its seen that the
17 respondents are strongly satisfied and 175 are satisfied
out of 200 respondents and no one is disagree by the services.
The mean value is 4.05 indicates that the customers are
satisfied to a great extent. And the standard deviation is
0.623 also support the interpretation. Employees skill and
knowledge is satisfactory.
3.5.2. Employees are Friendly and Respectful to Solve the
Customer Problems
It is important work of the employee to solve the
customers problems. And the employee should solve the
problem friendly and respectfully.
It has been found that the76 respondents are strongly
satisfied and 114 are satisfied out of 200 respondents and no
one is disagree by the services. The mean value is 4.33
indicates that the customers are satisfied to a great extent.
And the standard deviation is 0.321 indicates the customers
have lower variability level. So the customers opinions are
vary one to another. Employees are friendly and respectful to
solve the customer problems
3.5.3. Employees are Trustworthy
Customers satisfaction towards the Employees are
trustworthy is given below:
Table 3.5.3. Employees are trustworthy
Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
41
100
57
2
0
200
3.90
0.520
The table 3.5.3 its seen that the 41 respondents are

strongly satisfied and 100 are satisfied out of 200
respondents and no one is disagree by the services. The
mean value is 4.33 indicates that the customers are satisfied
to a great extent. And the standard deviation is 0.520
indicates the customers have moderate variability level.
3.5.4. Employees Perform the Services with Consistency
and Accurately
Customers satisfaction towards the Employees perform
69
the services with consistency and accurately is given below

Table 3.5.4. Employees perform the services with consistency and
accurately
Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
57
100
34
9
0
200
4.03
0.634
The above table 4.5.4 its seen that the 57 respondents are
mean value is 4.03 indicates that the customers are satisfied.
have lower variability level. So the customers opinions are
vary one to another.
3.5.5. Employees Respond Quickly to Customer Request
and Problems
It has been found that the 59 respondents are strongly
satisfied and 93 are satisfied out of 200 respondents and no
one is disagree by the services. The mean value is 4.04
indicates that the customers are satisfied to a great extent.
have moderate variability level. So we can say that
employees respond quickly to customer request and
problems.
3.5.6. Top Level Employee Support is Satisfactory
From the survey, it has been found that the 70 respondents
are strongly satisfied and 120are satisfied out of 200
mean value is 4.30 indicates that the customers are satisfied
to a great extent. And the standard deviation is 0.310
indicates the customers have lower variability level. So we
can say that the top level employee support is satisfactory.
3.6. Sixth Factor: Physical Environment and Support
3.6.1. Bank Location is Convenient
Customers satisfaction towards the Bank Location is
Convenient is shown below:
Table 3.6.1. Bank Location is Convenient
Options
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Total
Mean Score
Standard Deviation
Value
5
4
3
2
1
Frequency
4
122
73
1
0
200
3.65
0.279
70

mean value is 3.65 indicates that the customers near satisfied
position. And the standard deviation is 0.279 indicates the
customers had very lower variability level.
3.6.2. Internal Environment is Suitable
Banks internal environment means its interior decoration,
lighting, ventilation, air conditioner etc. BASIC Bank
internal environment is suitable to its consumer.
Here the responses given by the customers are strongly
agree, agree, neutral and disagree. The respondents

appreciated about the decoration of the bank, but the most
strong point of view for BASIC Bank Ltd. Khulna branch is
that there is no customer who said that they have a negative
impression about the banks internal environment. But few
consumers were talking about the space of the bank they
think that the bank space is not sufficient. The mean value is
3.55 indicates that customers of the bank is near satisfaction
level and the standard deviation (0.328) also support the
results.
3.7. Statistics on Survey
Table 3.7. Survey results at a glance

Factors
A. Products
01. Deposit products are adequate to meet the need
02. Varity of services in local remittance is satisfactory
03. Loan products (O/D, Term loan) are adequate to meet the need
04. Satisfied with different types of foreign exchange services (Import L/C)
05. Locker services is satisfactory
06. Purchase and encashment of Sanchaya Patra is satisfactory
Average
B. Rate of Interest
07. Interest rate for deposit and schemes is high
08. Interest rate for loan product is low
Average
C. Procedures pf Services
09. Account opening procedure is easy
10. TT,DD & PO issuing procedure is easy
11. Loan sanction and disbursement system is easy
12. Cash deposit and withdrawal procedure is very quick
13. Queue system of cash counter is perfect
14. Customers complaint and suggestion system is satisfactory
Average
D. Charges
15. Account related charges (maintenance fee, average balance fee, inter-city charge ) is low
16. Services charge for local remittance is low
17. Satisfied with charges for foreign exchange services
18. Loan processing fee is reasonable
19. Charges for TT,DD,PO is reasonable
Average
E. Performance of the Employee
20. Employees skill and knowledge is satisfactory
21. Employees are friendly and respectful to solve the customer problems
22. Employees are trustworthy
23. Employees perform the services with consistency and accurately
24 Employees respond quickly to customer request and problems
25. Top level employee support is satisfactory
Average
F. Physical Environment and Support
26. Bank Location is Convenient
27. Internal environment (decoration, ease of contact, lighting, cleanliness) is suitable
Average
Table 3.7 summarizes the survey result of the satisfaction

of the customers about service provided by the BASIC Bank.
Khulna, The average score suggests, among the 6 main
Mean Score
Standard
Deviation
Valid
N
4.22
4.21
4.11
4.46
4.57
4.89
4.41
0.252
0.482
0.267
0.536
0.245
0.099
0.314
200
190
132
13
7
36
4.18
3.15
3.67
0.172
0.513
0.343
180
136
4.35
4.16
3.87
4.06
4.10
3.42
3.99
0.298
0.495
0.421
0.277
0.356
0.474
0.387
200
194
130
200
200
200
3.93
4.09
4.05
3.87
4.05
4.00
0.325
0.837
0.520
0.228
0.283
0.439
200
194
21
133
196
4.05
4.33
3.90
4.03
4.04
4.30
4.11
0.623
0.321
0.520
0.634
0.594
0.310
0.500
200
200
200
200
200
200
3.65
3.55
3.60
0.279
0.328
0.304
200
200
factors the product offering, charges and performance of the

employees satisfied customers. And the customers are not
fully satisfied by the rate of interest and physical
environment and support. In case of procedure of service the

average mean score is 4.38 that mean they are not fully
satisfied by the overall procedure of the service. The
standard deviation of the satisfied factors are less than the
standard deviation of the dissatisfied factors that means,
there exits less variability in the opinion on the satisfied
factors.
As the factors are consisted of 27 statements, variability in
opinion on some of the statements influences the average
mean score of a particular factor. In case of procedure of
service which consists of 6 statements, the customers are
satisfied by the account opening requirements, queue system
of the cash counter and number of installment hut they are
dissatisfied by the documents required for loan approval and
the action that the bank take for failing the loan installment.
So the average mean score suggests that the customers are
not fully satisfied by the procedure of the service.
Among the six factors it seen that the average mean value
4.41 and standard deviation is 0.314 in case of products. In
the second, factors the average mean score is 3.67 and
average standard deviation is 0.343 indicates that the
customers are not satisfied in case of rate of interest. In case
of procedures of services the average mean value is 3.99 and
average standard deviation is 0.387 indicates that the
customers are near satisfactory level. The four factors the
average mean value is 4.00 and average standard deviation is
0.439 indicates that the customers are satisfactory level. In
the point of performance of the employees average mean
value is 4.11 and average standard deviation is 0.500
indicates that the customers are moderate satisfactory level.
In the last point of physical environment average mean value
is 3.60 and average standard deviation is 0.304 indicates that
the customers are moderate satisfactory level. From the
above discussion it is concluded that the customers are more
satisfied in the first factor and lower satisfied in the last
point.
is 4.40 and finally higher income groups are 4.21

4.2. Rate of Interest
4.1. Products
In the case of procedures of services the customers of

the bank are near satisfaction level i.e. the average
mean value is near the value 4 (Table 3.7). In the case
of cash deposit and withdrawal procedure the
customers are not fully satisfied. And the customers
compliant and suggestion are not good as mean value
3.42 (Table 3.3.6)
In the point of occupation both business and service
holders are near same position. They are stayed the
same level of point.
On the other part of analysis it is seen that higher
income groups are more satisfied than other groups
4.4. Charges
After analysis the survey results of BASIC Bank Ltd.,

Khulna Branch have found different types of value and it
indicates different meaning. The general findings are as
follows:
In the case of products customers are satisfied and the

variability level is moderate (Table 3.7). It also found
that, deposit products are not adequate to meet the need
as mean value is 4.22.Loan products are not adequate
to meet the customers need and mentioned that there is
no long term loan facility.
In the point of occupation level service holders are
more satisfied than business persons but not very
difference.
In the point of income level lower income groups are
more satisfied than other groups and it average mean
value is 4.50, then income groups (TK. 40000-80000)
In the case of interest the customers of the bank are not

satisfied if the variability is lower level (Table 3.7). It
also found that interest for loan products are higher
than customers expectation as mean value 3.15. The
rate is vary 10.00%-14.75%.
In the point of occupation groups average mean value
shows that both are not satisfied.(Table 3.9.2)
In the case of income level the both groups are near
same position. But lower income groups have great
variability than other groups.
4.3. Procedures of Services
4. Findings
71
In the point of charges the customers are exist

satisfaction level (Average mean value 4.00 (Table 3.7).
In case of service charges for local charges are not
reasonable in some cases as mean value 4.05 (Table
3.4.5). And in the case of loan processing the
customers are not satisfied as mean value 3.87 and it
higher than customers expectation. Charges for
foreign charges L/C (Letter of Credit) is more than
other private banks as mean value is 4.05(Table 3.4.3)
In the case of occupation, the businesses are more
satisfied than that of services holders. (Average mean
value of business is 4.04 and services holders is 3.98).
But the business exist more variability than service
holders.
In the income level, higher income groups are more
satisfied than other income groups. But the variability
level is more than others.
4.5. Performance of the Employees
The factors performance of the employees seen that the

customers are satisfaction level as average value 4.11.
It also seen that it has moderate variability (Table
3.7).It found that the customers complaints and
suggestion system are not satisfactory because the
mean value is 3.42 (Table 3.3.6)
In occupation level the service holders are more
satisfied than businesses. But service holders have
72

greater variability.
In the groups are more satisfied than others two groups.
But the average standard deviation of second income
groups (TK.40000-80000) is higher i.e. it exist higher
variability.
4.6. Physical Environment and Support
The customers of the bank are not fully satisfied as

average value 3.60. But the variability level of the
customers is lower than other factors. (Table 3.7)
In the case of occupation the service holders are more
satisfied than business but not satisfactory level. And
the factors exists lower variability level.
5. Conclusion
The BASIC Bank Ltd, Khulna Branch is performing
better to its customers services through its services products.
It is found from the study that the responses of the customers
on the performance of BASIC Bank Ltd. Khulna are quite
well. At the time of survey, some clients of BASIC Bank,
Khulna branch highly appreciate some features of this bank
but they also show their negative attitude about some criteria.
Among the identified six factors, customers have positive
views towards every of the factors. They are neutral in some
factors especially in the physical environment and support.
And customers are not found strongly dissatisfied in any
statements out of 27.
It is apparent from the survey that the customers are
satisfied with quick service delivery process, some charges
as well as satisfactory procedure of services. The banks
service charge is low also. Customers possess overall good
attitude about foreign and local remittance services. But
depositary and loan products are not adequate for them.
Customers are dissatisfied with interest rate of loan.
Moreover they are satisfied with account Opening
requirements, One-stop services of cash counter and loan
adjustment procedure. Among the physical environment and
support, customers are satisfied through location of the
bank.
The study also reveals that the customers are satisfied by
the overall performance of BASIC Bank, Khulna branch that
is why most of them are interested to take further financial
services from bank. They express most positively that they
will refer also to others to take services from this bank. And
bank officials also inform that some of the customers are
good source of referral.
From the analysis of variation due to demographic
difference it is found that both business and service holders
are satisfied but some cases are different. And in the income
level higher income groups (TK.80000+) are more satisfied
in some cases but not all. The savings account holders are
highly satisfied in case of purchase and encashment of
different types of Sanchaya Patra.
During first half of FY08, exports, import payments and
remittances receipts increased by 4.43 percent to
US$6495.92 million, 15.90 percent to US$9599.80 million
and 26.24 percent to US$ 4827.31 million against

US$ 6220.61 million, US$ 8282.50 million, and
US$ 3824.04 million respectively during the same period of
the previous year. Total official foreign aid disbursement
increased by 3.6 percent to USD 1625.0 million in FY(Fiscal
Year) 07 from USD 1568.0 million received in FY06.
Development outlook in FY08 the growth of the Bangladesh
economy is expected to slow down in 2008 due to a series of
natural calamities including two rounds of floods and the
cyclone Sidr, which never happened in one year in recent
past. Some 46 out of the countrys 64 districts were
adversely affected with more than 16million people
marooned and over 2 million houses damaged in the floods,
the worst since 1998.
Finally the BASIC Bank Ltd is a renowned in Bangladesh
in especially small business sectors. If the banks initiative to
overcome negative barriers which are viewed by customers,
the services would be more attractive and competitive this
will be benefit both customers and the bank.
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Science Journal of Business and Management

2013; 1(4): 58-73

Customers satisfaction about services quality & services

BASIC Bank Limited, Khulna, Bangladesh

To cite this article:

Keywords: Satisfaction, Customer, Banking, Environment, Attitude, Service, Demographic

financial institutions have been playing a key role in

International Journal of Business and Management 2013; 1(4): 58-73

and evaluation process of products of an organization.

To explain the services offered to the customers at

To determine the various customer services expected

To recommend to increase the service quality by

Bank Limited is one of the leading private banks in

Tangibles: The physical surroundings represented by

Reliability: the service providers ability to provide

Responsiveness: a firms willingness to assist its

Assurance: diverse features that provide confidence to

Empathy: the service firms readiness to provide each

Md. Ariful Islam et al.:

Customers Satisfaction about Services Quality & Services Provided by

The SERVPERF scale is found to be superior not only as

consumers of BASIC Bank Ltd, Khulna Branch and total

Current A/C Holder

Savings A/C Holder

1.4.6.4. Questionnaire Development

International Journal of Business and Management 2013; 1(4): 58-73

product, promotion, price, and place. Generally, marketing

product re-work, etc. (Fornell 1992; Anderson, Fornell, and

Md. Ariful Islam et al.:

Customers Satisfaction about Services Quality & Services Provided by

importance of attributes, marketers can spend resources on

customers from recommendations by its existing account

International Journal of Business and Management 2013; 1(4): 58-73

In case of bank, the services are intangible in nature, here

There are some terms thats defined as follows:

Md. Ariful Islam et al.:

Customers Satisfaction about Services Quality & Services Provided by

2.3. Internal Customer Service

2.6. Complaint and Suggestion System

An internal customer service is a service that is provided

Now a day, complaint and suggestion system is treated as

2.4. Customer Satisfaction

2.7. Customer Satisfaction Surveys

International Journal of Business and Management 2013; 1(4): 58-73

complaints also. When they place a complaint they seek

are the same as other banks. In this statement respondents

3. Analysis and Interpretation

The survey regarding the customer satisfaction about the

3.1. First Factor: Products

The BASIC Bank Limited, Khulna Branch provided six

Here mean score is 4.11 that mean the customers are

Md. Ariful Islam et al.:

Customers Satisfaction about Services Quality & Services Provided by

and receives foreign remittance. Customers satisfaction

The locker service by the BASIC Bank Khulna Branch is

Table 3.1.6. Purchase and encashment of Sanchaya Patra is satisfactory

Here respondents opinion varies to some extent, as

International Journal of Business and Management 2013; 1(4): 58-73

The customers of the BASIC Bank Limited response

From the table 4.3.1, it is seen that among the 200

In the point of TT, DD and PO issuing procedure, 66

customers are satisfied by the above service. It also indicates

The results shown in the table 3.3.3 identifies that